Apart from consumer electronics, fashion category sells the most on online portals. The margins are much higher in this retail segment than smartphones. And during the festival season like Diwali, the demand for clothes and accessories scales up exponentially. Ecommerce biggies and Amazon and Flipkart are banking on this consumer shopping pattern ahead of Great Indian Sale and Big Billion Day.
As reported earlier this month, Amazon India is looking to introduce at least half a dozen of private labels to stay ahead in competition. The first of which was debuted this month, according to reports. The marketplace’s biggest seller Cloudtail launched the fashion private brand christened as Symbol.
The launch was deliberately planned just before Amazon Great Indian Sale as the marketplace wants to milk the festive season as much as possible. Other private brands will be launched by the end of this year according to company sources.
Homegrown ecommerce player and Amazon’s biggest rival Flipkart’s target is to increase BBD’s sales revenue by pushing apparel and accessories category.
The etailer that acquired fashion etailer Jabong and owns Myntra, has a fashionable edge over other ecommerce players. Hence, the firm is aiming to utilize this competitive advantage to tide over the rough weather.
An industry observer said,
“Fashion is the only safe haven for Flipkart right now, so it’s not really a competitive strategy. But, it is an important category and there’s still a long way to go. If you look at what’s happening, Amazon has surrounded Flipkart – they have opened Kirana, Pantry, they’re selling second-hand goods and books, and they’re doing exchange offers.”
Flipkart is focusing on smaller categories and customer experience.
“This year, our key focus is to ensure maximum value to our consumers by making quality products affordable and accessible. Great offers and exclusive partnerships will give our customers more options to choose from…,” shared Kalyan Krishnamurthy, Flipkart’s Head – Category Design Organization.
On the other hand, Amazon is looking to fill gaps across all product categories on its platform.
“If there are selection gaps on your platform, then there are spaces that absolutely need to be filled. But you want to do it in an area where there clearly is need and customers would shop for that,” said Amit Agarwal, Vice President and Country Manager at Amazon India.
Flipkart is strong in fashion, Amazon is weak. Amazon is strong financially and Flipkart’s market valuation is questionable at this stage.
In the last two months, the American etailer earned more sales compared to the Indian etailer, which is a first. So winning the festive war is on high on agenda for both. Let’s see who will win.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
Leave a Comment
